Coniglio lawyer: Former senator had no authority to pull budget strings

William Perlman/The Star-LedgerSenator Joseph Coniglio after the indictment outside the Federal Courthouse in Newark

The e-mail arrived at the state Senate Democrat Office in June 2004, just as New Jersey's budget process began heating up. Written by a staffer of then-state Sen. Joseph Coniglio, it posed a question using a typographical shortcut: "What $ is available for Joe to insert into the budget for the district -- like pet projects."

Today, prosecutors showed that e-mail to jurors in U.S. District Court in Newark, where Coniglio is standing trial on mail fraud and extortion charges. He is accused of using his former office to direct money from the state budget to Hackensack University Medical Center in exchange for a lucrative consulting job.

The Bergen County Democrat and former plumber was charged last year following a probe of a once-infamous backroom Statehouse practice called the "Christmas tree" program. It awarded millions in state grants -- essentially political gifts -- to local organizations with little or no public oversight.

But Coniglio's lawyer, Gerald Krovatin, tried to demonstrate today that Coniglio, who was elected in 2001, lacked the stature to manipulate purse strings. He argued it was state Senate and Assembly leaders -- like Senate President Richard Codey and former Senate Budget Committee chairman Wayne Bryant -- who controlled the money.

"Senator Coniglio wasn't a member of leadership, was he?" Krovatin asked.

"No," said George LeBlanc, the Senate's Democratic budget officer.

At one point, Krovatin showed jurors a 2004 handwritten list from the Senate Democratic Office that seemingly indicated Coniglio had requested $500,000 and $900,000 grants for the medical center. It was labeled "Legislative Requests."

But Krovatin asked jurors to look closely. Using an overhead projector to magnify the document, he pointed out two words that had been scribbled over: "Codey's Requests."

Coniglio, 66, worked 22 months as a consultant for the hospital, which paid him $5,000 and later $5,500 per month. During that time, prosecutors say, he directed more than $10 million in state funds to the hospital.

Coniglio, who did not seek re-election in 2007, is charged with nine counts of mail fraud and extortion. He faces up to 20 years in prison and a $250,000 fine if he is convicted.

Much of today's testimony focused on the complex mechanics of the state's budget process. It typically culminates in June, after lawmakers, their staffers and state officials swap countless e-mails, spreadsheets and requests for cash.

"Each Democratic senator had an allotted amount of money to a make a request," testified Ikhlas Rashid, who worked as a research assistant in the Senate Majority Office in 2004.

Coniglio was a member of the Senate Budget Committee that same year. Assistant U.S. Attorney Rachael Honig today asked if that gave him an added influence over the budget.

But Krovatin argued that in the end, it's the state Senate and Assembly leaders who negotiated the budget with the governor's office -- not the members of the budget committee.

Before testimony began today, Krovatin told U.S. District Judge Dennis Cavanaugh FBI agents on Tuesday visited two character witnesses scheduled to take the stand on behalf of Coniglio. They also delivered subpoenas to a third witness, asking for documents turned over to authorities two years ago, Krovatin said.

'It is solely done for the purpose of intimidating and harassing our witnesses and chilling them from testifying," the attorney said.